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Final Accounts

The document presents information on final accounts, including trading and profit and loss accounts and balance sheets. It provides an example trial balance for Mohan as of March 31, 2008 and shows the calculations to prepare a trading and profit/loss statement and balance sheet from the trial balance information. The trading and profit/loss statement calculates gross profit and expenses to determine net profit. The balance sheet lists assets, liabilities, and capital as of the given date based on the net profit and other account balances.

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Abhinav Kumar Yadav
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1K views9 pages

Final Accounts

The document presents information on final accounts, including trading and profit and loss accounts and balance sheets. It provides an example trial balance for Mohan as of March 31, 2008 and shows the calculations to prepare a trading and profit/loss statement and balance sheet from the trial balance information. The trading and profit/loss statement calculates gross profit and expenses to determine net profit. The balance sheet lists assets, liabilities, and capital as of the given date based on the net profit and other account balances.

Uploaded by

Abhinav Kumar Yadav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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PRESENTATION ON FINAL

ACCOUNTS

BY- ABHINAV K YADAV


FINAL ACCOUNTS
Final accounts are organized summaries
of detailed information about the financial
position of an enterprise.
Final accounts are denoted by two basic
statements-
1. Trading and profit and loss
account
2. Balance sheet
Asset

Liability

Income and expenses


The following is the trial balance of Mohan as on 31st March
2008
Particulars Dr.(Rs) Cr.(Rs)
Land and Building 1,42,500 -
Plant and Machinery 42,500 -
Furniture 47,500 -
Motor vehicles 47,500 -
Opening Stock 75,000 -
Purchases & Sales 5,25,000 6,30,000
Returns 10,000 5,000
Carriage Inwards 1,000 -
Carriage Outwards 2,000
Wages 4,000
Salaries 20,000
Discount 2,000 1,000
Commission 1,500 2,000
Particulars Dr.(Rs) Cr.(Rs)
Interest 2,500 3,000
Rent 3,000 -
Postage 500 -
Depreciation 20,000 -
Debtors & creditors 2,05,000 50,000
Cash in hand 5,000 -
Cash at bank 24,000 -
Capital account - 5,00,000
Drawings 10,000 -

Closing Stock as on 31.3.2008 was Rs. 42,000


Solution:
Trading and profit and loss account as on 31st March 2008
Particulars Rs. Particular Rs.
To, Opening stock 75,000 By, Sales
6,30,000 6,20,000
(-)returns 10,000
To, Purchases 5,25,000 By, Closing stock 42,000
(-)returns 5,000 5,20,000
To, Carriage inwards 1,000
To, Wages 4,000
To, Gross profit transferred 62,000
. to P&L A/c
6,62,000 6,62,000

To, Depreciation 20,000 By, Gross Profit b/d 62,000


To, Carriage Outwards 2,000 By, Discount 1,000
To, Salaries 20,000 By, Commission 2,000
To, Discount 2,000 By, Interest 3,000
To, Commission 1,500
Particulars Rs. Particulars Rs.
To, Interest 2,500
To, Rent 3,000
To, Postage 500
To, Net Profit transferred to 16,500
. Capital A/c
68,000 68,000
Balance sheet of Mohan as on 31 March 2008
Liabilities Rs. Assets Rs.
Capital 5,00,000 5,06,500 Land & Building 1,42,500
(+) Net Profit 16,500

(-) Drawings 10,000


Creditors 50,000 Plant & Machinery 42,500
Furniture 47,500
Motor Vehicles 47,500
Cash in hand 5,000
Cash at Bank 24,000
Debtors 2,05,000
Closing Stock 42,000
5,56,000 5,56,000
THANK YOU FOR
YOUR PATIENCE

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